Service Processes – OM in the News

Impact of Wage Increase for California Fast Food Workers

Governor Newsom signed into law a rapid pay hike for fast food workers, increasing their minimum wage from an average of around $16/hour, to $20/hour, effective on April 1, 2024.

While some workers may be happy, the $20/hour rate is predicted to wreak havoc on the restaurants that must pay it.

Video Spotlight:

California McDonald’s franchisee group expresses concern over states new wage bill (Sept 15, 2023, CNBC Television)
Newsom signs law to raise minimum […]

By Lisa M. Spencer|2023-11-20T07:10:09+00:00November 26, 2023|Tags: automation, minimum wage, productivity, robotics, supply chain|

Mass Customization of Condiments: Will Customers Relish Choice?

Kraft Heinz plans to increase the number of condiments available at Quick Service Restaurants (QSR) with its Kraft Heinz Remix machine.

The Remix machine was introduced at the May 2023 National Restaurant Association Show in Chicago.

Using a touch screen, a customer selects a base of either ketchup, ranch, 57 Sauce or BBQ sauce. The next step is to add “enhancer(s)” to the sauce, which include jalapeno, smoky chipotle, buffalo, and mango. Finally, a customer selects one of three intensity levels.

The combination […]

By Ross L. Fink, Ph.D.|2023-06-25T19:03:36+00:00June 25, 2023|Tags: automation, mass customization, product design, quick serve restaurants, service processes|

The USPS Wants to Deliver its Operations Strategy

The USPS continues its ambitious transformation.

Although the first two years of the ten-year transformation plan have produced mixed results, the Postmaster General wants to forge ahead with the pursuit of excellence in quality, cost, delivery, and flexibility. Because revenues from mail delivery continue to decline, the USPS is targeting shippers, a bold move for a late entrant in the package delivery business. This strategy requires a complete overhaul of the organization. Modernization and streamlining of services and […]

By Corinne M. Karuppan, Ph.D.|2023-06-19T21:16:03+00:00June 21, 2023|Tags: automation, bottleneck, carbon footprint, competitivness, delivery, JIT, logistics, process management, productivity, service quality, strategy, supply chain management, sustainability|

Efficiency or Identity? A Dilemma for Fast Food Restaurants

Minimalism is in; Googie architecture is out.

Red roofs, neon golden arches, and other bright-colored structures have practically disappeared from the fast food landscape. They have been replaced by boxy, sleek designs that reflect both cultural and economic trends. Whether or not these new designs are less aesthetically pleasing than their older counterparts is a matter of personal taste. Fast food chains’ primary goal remains to give customers what they want.

Video Spotlight: The Decline of Pizza Hut…What […]

By Corinne M. Karuppan, Ph.D.|2023-03-14T23:06:07+00:00March 15, 2023|Tags: automation, competitivness, delivery, lead time, location, productivity, service design, service quality, strategy, value, waiting lines|